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How can the time value of money equation be modified to include more complex calculations?

How can the time value of money equation be modified to include more complex calculations?

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Solution: The time value of money is a computation to know the future return on investments and cash flow on bonds. The considerations that are made while computing TVM are interest rates, discounted cash-flow, present value or future value, and potential risk. The formulas for present value and future value can be modified for computing the PV and FV for continuously compounded interest rates.

For example: The formula for the future value of an annuity can be modified to calculate the future value of an annuity due by adding (1+r) for the one year added interest. Thus the formula will be:

FVn = CF * [(1+r)^n - 1] / r * (1+r)

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